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HomeMy WebLinkAbout2014 Ordinance No. 043• ORDINANCE NO. !13 SERIES OF 2014 BY AUTHORITY COUNCIL BILL NO. 44 INTRODUCED BY COUNCIL MEMBER WILSON AN ORDINANCE AMENDING TITLE 5, CHAPTER 15, SECTION I, ENTITLED PAWNBROKERS AND SECOND HAND DEALERS AND CHAPTER 23, SECTION 1, ENTITLED PURCHASER OF VALUABLE ARTICLES OF THE ENGLEWOOD MUNJCIP AL CODE 2000. WHEREAS, the City is authorized to license and regulate pawnbrokers and purchasers of valuable articles by 31-15-40l(l)(n) and 31-15-501 et. seq. C.R.S.; and WHEREAS, changes to the Englewood Municipal Code are made as business activity and other conditions change; and WHEREAS, licensing requirements are reviewed annually to ensure Code language is cUJTent as well as licensing fees are adequate to cover additional staff time required to administer the various license issued by the Finance and Administrative Services Department; and WHEREAS, until recently, the buying and selling of gift certificates/cards, electronic equipment (e.g. cell phones, laptops, tablets, etc.), or tools was relatively unknown, and the increased demand for these items may invite criminal activity unless preventative actions are taken; and WHEREAS, updating the definitions in Chapters 15 and 23 reflect additional items (gift certificates/cards, electronic equipment, and tools) that could be purchased and resold by vendors without properly verifying the ownership of these items; and WHEREAS, this proposed ordinance expands definitions so gift certificates/cards, tools, or electronic equipment is not resold through a license holder without documentation of the person selling property to license holder who in turn provides the Police Department with information to investigate criminal acts if necessary. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Section 1. The City Council of the City of Englewood, Colorado hereby authorizes amending Title 5, Chapter 15, entitled Pawnbrokers and Second Hand Dealers of the Englewood Municipal Code 2000, to read as follows: 5-15-1 : Definitions. As used in this section, the following terms shall have the meanings indicated: 1 9 bii Contract for Purchase: A contract entered into between a pawnbroker and a customer pursuant to which money is advanced to the customer by the pawnbroker on the delivery of tangible personal property by the customer to the pawnbroker on the condition that the customer, for a fixed price and within a fixed period of time, not to exceed ninety (90) days, has the option to cancel the contract and recover from the pawnbroker the tangible personal property. Fixed Price: The amount agreed upon to cancel a contract for purchase during the option period. Said fixed price shall not exceed: (})One-tenth (1/10) of the original price for each month, plus the original purchase price, on amounts of fifty dollars ($50.00) or over; or (2)One-fifth (1/5) of the original purchase price for each month, plus the original purchase price, on amounts under fifty dollars ($50.00). Fixed Time: That period of time, not to exceed ninety (90) days, as set forth in a contract for purchase, within which the customer may exercise an option to cancel the contract for purchase. Local Law Enforcement Agency: Any marshal's office, police agency, or sheriffs office with jurisdiction in the locality in which the customer enters into a contract for purchase or a purchase transaction. Option: The fixed time and the fixed price agreed upon by the customer and the pawnbroker in which a contract for purchase may be, but does not have to be, rescinded by the customer. Pawnbroker: A person regularly engaged in the business of making contracts for purchase or purchase transactions in the course of business. This section shall not apply to secondhand dealers unless specifically adopted by another section. Person: Any individual, finn, partnership, association, corporation, company, organization, group or entity of any kind. Police Department: The Department of Police for the City of Englewood. Purchase Transaction: The purchase by a pawnbroker in the course of business or tangible personal property for resale, other than newly manufactured tangible personal property which has not previously been sold at retail, when such purchase does not constitute a contract for purchase. Secondhand Goods: Includes any tangible personal property not sold as new and normally having been used by one or more intermediaries. Secondhand property does not include items that were sold as new and returned by the customer for exchange or refund. Secondhand property incJudes but is not limited to tools and electronic devices. Also, secondhand property does not include reconditioned property purchased from a wholesaler. Secondhand Dealer: A person engaged in the business of buying and selling or reselling secondhand goods. 2 ! • • Tangible Personal Property: All personal property other than j chos&.s in action, securities, or printed evidences of indebtedness, which property is deposited with or otherwise actually delivered into the possession of a pawnbroker in the course of business in connection with a contract for purchase or purchase transaction. Section 2. The City Council of the City of Englewood, Colorado hereby authorizes amending Title 5, Chapter 23, entitled Purchaser of Valuable Articles of the Englewood Municipal Code 2000, to read as follows: 5-23: PURCHASER OF VALUABLE ARTICLES 5-23-1: Definitions. For the purpose of this Chapter, the following terms, phrases, words and their derivations shall have the meanings given herein: Precious or Semiprecious Metals or Stones: This definition includes, but is not limited to gold, silver, platinum, pewter, alexandrite, diamonds, emeralds, garnets, opals, rubies, sapphires, and topaz. Also, included under this definition is ivory, coral, pearls, jade and other such minerals, stones, or gems as are customarily regarded as precious or semiprecious. Private Collector: Any person who purchases an item for a price greater than the market price of the item's metallic or stone composition, who has an interest in preserving the item in its unique or historical form, and whose primary purpose in purchasing is not the immediate resale of the item . Purchase: Giving money to acquire any valuable article. Purchaser: Any person holding himself out to the public as being engaged in the business of purchasing valuable articles, or any person who purchases five (5) or more valuable articles in any thirty (30) day period. A purchaser does not include a person purchasing valuable articles from a retail or wholesale merchant who deals in goods of that kind. Seller: Any person offering a valuable article for money to any purchaser. Valuable Article: Any tangible personal property eeesistiag, iB whale er iB 13art, ef including precious meEa1s or semiprecious metals, precious or semiprecious stones, iaelYdiBg collector coins, and gift certificates/cards (as defined by C.R.S. Title 6. Article J, Part 722). Section 3. Safety Clauses. The City Council hereby finds, detennines, and declares that this Ordinance is promulgated under the general police power of the City of Englewood, that it is promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further detennines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 4. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this Ordinance or it application to other persons or circumstances. 3 Section 5. Inconsistent Ordinances. All other Ordinances or portions thereof inconsistent or conflicting with this Ordinance or any portion hereof are hereby repealed to the extent of such inconsistency or conflict. Section 6. Effect of repeal or modification. The repeal or modification of any provision of the Code of the City of Englewood by this Ordinance shall not release, extinguish, alter, modify, or change in whole or in part any penalty, forfeiture, or liability, either civil or criminal, which shall have been incurred under such provision, and each provision shall be treated and held as still remaining in force for the purposes of sustaining any and all proper actions, suits, proceedings, and prosecutions for the enforcement of the penalty, forfeiture, or liability, as well as for the purpose of sustaining any judgment, decree, or order which can or may be rendered, entered, or made in such actions, suits, proceedings, or prosecutions. Section 7. Penalty. The Penalty Provision of Section 1-4-1 EMC shall apply to each and every violation of this Ordinance. Introduced, read in full, and passed on first reading on the 21 st day of July, 2014. Published by Title as a Bill for an Ordinance in the City's official newspaper on the 25th day of July, 2014. Published as a Bill for an Ordinance on the City's official website beginning on the 23rd day of July, 2014 for thirty (30) days. Read by title and passed on final reading on the 4th day of August, 2014. Published by title in the City's official newspaper as Ordinance No. i3 Series of 2014, on the 8th day of August, 2014. Published by title on the City's official website beginning on the 6th day of August, 2014 for thirty (30) days. This Ordinance shall take effect thirty ~blication following final passage. 1e;~7G :-:-:--- I, Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is ,a~e copy of the Ordinance passed on final re ·· · g and published by title as Ordinance No.~ Series of 2014. , 4 • • • • COUNCIL COMMUNICATION Date: Agenda Item: Subject: July 21, 2014 11 a ii A Bill for an Ordinance Updating Definitions for Pawn Brokers and Secondhand Dealers and Purchasers of Valuable Articles (Title 5, Chapters 15 and 23) of the Englewood Municipal Code Initiated By: Staff Source: Finance and Administrative Services Department Frank Gryglewicz, Director COUNCIL GOAL AND PREVIOUS COUNCIL ACTION City Council discussed changes to Pawn Broker and Purchaser of Valuable Articles license holder reporting requirements at the June 2, 2014 Study Session. Pawn Broker and Purchaser of Valuable Articles have similar report requirements so the changes in the Purchaser of Valuable Articles reporting will mirror those of Pawn Brokers. Council requested staff prepare a bill for an ordinance for consideration at an upcoming Regular Council meeting. Council approved Council Bill 36 on first reading at the June 16, Regular Meeting and on second reading at the July 7, 2014 Regular Meeting. -Staff has determined that some additional definitions and other changes are necessary to reflect the current business environment where gift certificates (cards), electronic devices, and tools are purchased and resold. Staff provided City Council with a memorandum (attached) dated July 2, 2014 regarding the proposed changes. RECOMMENDED ACTION Staff recommends Council approve the attached bill for an ordinance adding language to Title 5, Chapter 15, Section 1 (Definitions) and Chapter 23, Section 1 (Definitions) pertaining to Pawn Brokers and Secondhand Dealers and Purchasers of Valuable Articles. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED Staff often initiates changes to Englewood Municipal Code as business activity and other conditions change. Staff reviews licensing requirements at least annually to ensure Code language is current as well as licensing fees are adequate to cover additional staff time required to administer the various license issued by the Finance and Administrative Services Department. Until recently, the buying and selling of gift cards, electronic equipment (e.g. cell phones, laptops, tablets, -etc.), or tools was relatively unknown. Today, there is secondary market for gift cards, tools, and electronic equipment. Increased demand for these items may invite criminal activity unless preventative actions are taken. The attached bill for an ordinance updates definitions in Chapters 15 and 23 to reflect additional items (gift cards, electronic equipment, and tools) that could be purchased and resold by vendors without properly verifying the ownership of these items. The intent of these changes is to expand definitions so gift cards, tools, or electronic equipment is not resold through a license holder without documentation of the person selling property to license holder who in turn provides the Police Department with information to investigate criminal acts if necessary. Title 5, Chapter 15, Section 1 will be amended to read: Secondhand Goods: Includes any tangible personal property not sold as new and normally having been used by one or more intermediaries. Secondhand property does not include items that were sold as new and returned by the customer for exchange or refund . Secondhand property includes but is not limited to tools and electronic devices. Also, secondhand property does not include reconditioned property purchased from a wholesaler. Title 5, Chapter 23, Section l will be amended to read: Valuable Article: Any tangible personal property consisting, in whole or in part, of precious or semiprecious metals, precious or semiprecious stones. collector coins. and or gift certificates (as defined by CRS Title 6 Article 1 Part 722). FINANCIAL IMPACT This change to the Code is revenue neutral. LIST OF ATTACHMENTS Memorandum to Council dated July 2, 2014 Proposed bill for an ordinance • • Memorandum To: Mayor Penn and City Council Thn1: Gary Sears, City Manager City of Englewood Department of Finance and Administrative Services From: Frank Gryglewicz, Director of Finance and Administrative Services Date: July 2, 2014 Re: Background Information Regarding TiUe 5 Chapter 15 Pawnbrokers and Secondhand Dealers and Chapter 23 Purchasers of Valuable Articles City Council discussed changes to Pawn Broker and Purchaser of Valuable Articles license holder reporting requirements at the June 2, 2014 Study Session . Pawn Broker and Purchaser of Valuable Articles have similar report requirements so the changes in the Purchaser of Valuable Articles reporting will mirror those of Pawn Brokers. Council requested staff prepare a bill for an ordinance for consideration at an upcoming Regular Council meeting . Council approved Council Bill 36 on first reading at the June 16, Regular Meeting. After reviewing the Title 5, Staff determined some additional definitions and other changes are necessary in Title 5 Chapters 15 and 23 to reflect the current business environment where gift cards , electronic devices, and tools are purchased and resold . Staff recommends Council approve the attached bill for an ordinance adding language to Title 5, Chapter 15, Section 1 (Definitions) and Chapter 23, Section 1 (Definitions). Staff often initiates changes to Englewood Municipal Code as business activity and other conditions change. Staff reviews licensing requirements at least annuaJly to ensure Code language is current as well as licensing fees are adequate to cover additional staff time required to administer the various license issued by the Finance and Administrative Services Department. Until recently, the buying and selling of gift cards, electronic equipment (e.g. cell phones, laptops, tablets, etc.). or tools was relatively unknown. Today, there is secondary market for gift cards, tools, and electronic equipment. Increased demand for these items may invite criminal activity unless preventative actions are taken. The attached bill for an ordinance updates definitions in Chapters 15 and 23 to reflect additional items (gift cards, electronic equipment, and tools) that could be purchased and resold by vendors without properly verifying the ownership of these items. The intent of these changes is to expand definitions so gift cards, tools, or electronic equipment is not resold through a license holder without documentation of the person selling property to license holder who in turn provides the Police Department with information to investigate criminal acts if necessary . Changes to Title 5, Chapters 15 and 23 July 2, 2014 Page2 Title 5, Chapter 15, Section 1 will be amended to read: Secondhand Goods: Includes any tangible personal property not sold as new and normally having been used by one or more intermediaries. Secondhand property does not include items that were sold as new and returned by the customer for exchange or refund. Secondhand property includes but is not limited to tools and electronic devices. Also, secondhand property does not include reconditioned property purchased from a wholesaler. Title 5, Chapter 23, Section 1 will be amended to read: Valuable Article: Any tangible personal property consisting , in whole or in part, of precious or semiprecious metals or precious or semiprecious stones including collector coins, or gift certificates (as defined by CRS Title 6 Article 1 Part 722}. These changes to the Code should not impact revenues. If Council determines more information is needed regarding the proposed changes discussed above, the Bill for Ordinance can be delayed until Council and staff has adequate time to discuss at a study session.